The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1887-01-15

AN OVERLOOKING TREASURY.


The United States is in an enviable
fnancial position It's Golfers are full to
averfowing, and the ingenuity of Ameri-
AN politicians is taxed to invent plan
. ''reduce the Treasury surplus" We
rsfered to several of these plans few
avs ago, but in all probability this work
will be left for the next Congress to ac-
complish. The life of the present Con-
gress expires at midnight of March Sd,
md it is hardly probable that it can
inish all the important work before it
n the intervening time, much less at
ampt fiscal legislation of the magnitude
involved in such proposition.
On the Sd of January the Treasury ac
umulation of gold was stated to be
10, 912 ,413, the largest stock since the
assumption of specie payments in 1879
Except once in November, 1881; and
strange to saw, the stock of silver was
teadily din i1ishing despite the con-
nued coinage of that metal. The
ipuble standard, therefore, does not
make the United States the dump
Ing ground of all the silver of the world, -
ueither does the continuous coinage of
silver dollars under the Bland bill
drive all the gold out OF the country"
- was contended by the banking inter
It's in their bitter fight against the re-
onetiZation of silver. As matter of
ct, the law making silver dollars full
gal tender for all debts, public and
ivate, in the United States, had pre-
sely contrary effect, and was the in
iucing cause of the revival of business
nd continuous prosperity of that coun-
ny.
The Secretary of the Treasury has
uade further call for per cent bonds,
aggregating $10,OOO.OOO, and there is
gaason for thinking that the balance of
tnese bonds, amounting to $54, 1000, 900
tier this CALL will be redeemed before
ne close of the year. In effect, there
fore, although the National Bank circu-
alton will necessarily be reduced by
mis- debt liquidation, the Treasury will |
offset that drawback by releasing $64,
100000 of its gold accumulation which |
must go into circulation, while the an
uual saving in interest would amount to |
100000 This saving would of course
add to the debt paying ability of the
country, or i'll other words, would go to |
swell the increasing annual surplus i'll
The National Treasury.
As recently pointed out by the ADvER-
User, the funded debt of the United |
States, after the 3 per cents have all
been redeemed, will consist of $3.50, OOO,-
900 in AZ per cent bonds maturing in
1891, and $73S, coo, 900 in 4 per cents,
falling due iii 1907 The redemption Of
the AZ per cents in four years from now
is also absolutely certain; but the per
cents, having a life of twenty years,
command high figure as an untaxable
and were quoted at 30 per
cent premium ON the 4th instant. This
act alone would prevent the Secretary
Of the Treasury buying them in the
open market; and indeed the current
premium of 10 per cent on the AZ per
cents will prevent any attempt to fore
stall their maturity to save interest.
Four years will soOn pass by, and then
the bonds will be redeemed at their face
val e. IN 1891, therefore, the funded
debt of the United States will stand at
s73S, 100000 bearing 4 per cent in
terest, this burden being fastened
upon it by Senator Sherman while
Secretary OF the Treasury. 1t was
considered at the time to be a good
financial operation, but it is now re-
yarded in somewhat different light.
[ lere is further funded debt for which
ne United States Treasury is response
Die of $64, 623 ,512, being bonds issued to
he Pacific Railroads, and which these
.-eat corporations must ultimately repay.
n stating the funded debt of the nation,
lerefore, the Pacific Railroad bonds
| ed not be taken into account. They
re amply secured.
It follows from this presentation that
iscal measures must soon be considered
With view to the remission of duties
nd taxes. The Republican party still
lings to its protective theory, while the
Democratic party is not agreed upon
ommon tariff plank Southern Demo
rats are eoquetting with protection,
7hile the western tier OF States which
old the balance of power have not
ute made up their minds whether to
splete the Treasury by expenditures on